Question

13. In the following, you find the basic parameters of contract A that you have to adhere to: o Face value: $50,000, . Price of the contract today (ie, 10 years before maturity): $47,000. Yield (annualized): 3.5%. What is the annualized coupon rate of contract A? (a) 1.39% (b) 0.25% (c) 5.56% (d) 2.75% 14. In the following, you find the basic parameters of contract B that you have to adhere to: . Price of the contract today (i.e., 10 years before maturity): $175,000, Yield (annualized): 3%. Coupon rate (annualized): 2.5% What is the face value of contract B? (a) $365,696 (b) $182,848 (c) $91,424 (d) S45,712

Answer 1

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